Joan Jillson Owns a Coffee Shop

Multiple Choice

Joan Jillson owns a coffee shop.Assume that the marginal product of the labor Joan employs (MPL) equals 500 cups per week and the marginal product of her shop's capital (MPK) equals 1,000.Assume also that the wage (w) Joan pays her workers equals $250 per week and the rental price (r) of her capital - her coffee machines - equals $500 per week.Which of the following correctly analyzes whether Joan is minimizing her costs?

A) No, Joan is not minimizing her costs because MPK is greater than MPL and r is greater than w.
B) Yes, Joan is minimizing her costs because MPK/r equals MPL/w.
C) No, Joan is not minimizing her costs because MPL × w is less than MPK × r.
D) Yes, Joan is minimizing her costs because she is a price-taker in the markets for labor and capital.